The recent amendment to FAR 25.1329 (Amdt. 25-119, Eff. 5/11/06) doesn't allow autopilots that can lead the airplane into dangerous situations. For example, the A/P can't have the authority to stall the airplane. This is the good news.
Does anybody know if the aircraft in question was equipped with the EFS module? That should help with approach to stall and stall recovery.